Debt hurts California families in many different obvious and direct ways. There is no doubt that juggling debt and dealing with creditors and debt collectors is stressful. For some families, carrying debt can mean not having available money to buy the more lavish things in life, while for others it means cutting back on daily necessities like groceries and clothes.
California has one of the highest debt-to-income ratios (DTI) in the country. This means that Californians have more debt than the income they make than those living in most other states. Such a high DTI can seriously impact all aspects of your life, including your physical, emotional and mental well being.
Debt Can Make You Sick
According to a recent study from Salary Finance, those who are troubled by financial stress are generally six times more likely to be suffering from anxiety and seven times more likely to be depressed as those who do not have any financial worries. People in debt are also more likely to have trouble sleeping.
In addition to the mental health impact, debt related stress also contributes to a number of other medical problems such as:
- A worse sense of overall health and higher blood pressure
- Heart disease, including heart attacks
- Poorer cognitive function
Moreover, financial struggles can also indirectly impact health in other ways, such as lack of access to healthy food and hesitance to go to the doctor because of the cost. According to a Bankruptcy survey, 32% of people said they decided to forgo medical care and treatment at least once during the previous 12 months because of the cost.
Impact of Debt on Job Performance
Financial stress can also impact your performance at work. People burdened with debt are generally:
- More likely to be looking for a new job
- More likely to be dissatisfied with their jobs, even if they aren’t actively looking to leave
- More likely to have troubled relationships with co-workers
- More likely to be unable to finish their daily tasks
- More unproductive at work
Unfortunately, these issues are rarely short-lived. Financial stress is becoming even more of an issue during the recent coronavirus pandemic and its impact on the overall economic situation nationwide. Many people have lost their jobs or witnessed the demise of their businesses. For many, this will lead to even greater debt. And for most, filing bankruptcy may be the only answer to dealing with the financial crises.
Call an Experienced Central Valley Bankruptcy Attorney
For more information or to schedule a complimentary consultation with Central Valley bankruptcy attorney Gurjit Srai, please call 209-323-5558, or complete our online form.